All Students At Public Universities Not Eligible For Student Loans — MD, NELFFUND

Not all students at public institutions are eligible for student loans automatically; says, MD, NELFUND

Mr. Akintunde Sawyerr, the Managing Director/CEO of the Federal Government's recently formed Nigerian Education Loan Fund (NELFUND), has stated that student access to the loan facilities is subject to certain requirements.

Mr. Akintunde Sawyerr, the Managing Director/CEO of the Federal Government's recently formed Nigerian Education Loan Fund (NELFUND), has stated that student access to the loan facilities is subject to certain requirements.

Additionally, he specified that the loan would not be available to inmates in correctional facilities around the country, Nigerian students enrolled overseas, or students attending private post-secondary educational institutions.

He claims that the NETFUND loan, which is a pool of one percent of the nation's yearly tax, is only available to students enrolled in public tertiary colleges in Nigeria, either in the

He reiterated that the goal of the loan is to guarantee that no Nigerian student, regardless of financial hardship or course of study in Nigerian public schools, will leave school because of unmet financial obligations.

Under the auspices of the Education Writers' Association of Nigeria (EWAN) at the University of Lagos, Akoka, Sawyerr provided these clarifications during an interactive segment with journalists.

According to Sawyerr, NETFUND would function exclusively as a financial organization (rather than a grant maker), providing free-interest loans to students whose parents may not be able to support their education.

He asserts that the sole recipients of NETFUND loans are impoverished students and those at the bottom of the social scale, with the goal of redistributing wealth in their favor to prevent them from being denied access to high-quality education.

He emphasized that the loan, which will be divided into two parts, can only cover 100% (or less) of the total mandatory fees that students must pay to a specific institution plus stipends for other needs, such as housing and food for each academic session and based on the students' schools' geographic locations.

He mentioned that the stipends would be sent immediately into the bank accounts of the recipients when needed, but the first portion of the loan—which will cover the different fees assessed by each institution—would be paid directly to schools on behalf of students.

Also, he mentioned that even if loan recipients take several years to finish their education, they must apply each academic session rather than all at once. Their applications will be reviewed in a timely manner, usually within 30 days.

He said that by using the beneficiaries' provided verifiable information, such as the BVN, NIN, and admission letters from their schools, commercial banks, and other partner organizations, NETFUND has created a way for operations to run smoothly and transparently.

He claims that students who already have large financial accounts and, if any, “ghost students” won't be able to use the program.

The managing director further stated that although the loan repayment would begin formally two years after the recipients were released from the one-year National Youth Service Corps (NYSC) program, it may begin earlier or much later contingent upon the recipients' economic participation.

“So, there is no watertight timeline for repayment.

“Somebody could collect our loan today while still in school and may want to return the whole money the second day if he or she does not need the loan again. We will collect it.

“The same thing shall be applicable to those, who used the loan throughout their studies and graduated without getting a job on time. We can't expect such types of individuals to start paying back their loan when they are yet to be economically engaged.

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“However, we will definitely know when a beneficiary gets a job or if he/she is economically engaged two years after the National Youth Service Corps ( NYSC) programme," he stated.

Sawyerr pointed out that although the portal is not yet accessible for such submissions, the organization is prepared to start accepting applications from interested students.

“We will open the portal soon and this will be made public once we are ready,” he concluded.